The Creative Ability of Persons to Combine and Direct Resources

question 218

Multiple Choice

The creative ability of persons to combine and direct resources to produce new products is known as:

• A) economizing.
• B) entrepreneurship.
• C) value judgment.
• D) product sensitivity.

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Definitions:

Average Investment

The sum of the initial investment and the value at the end of the investment period divided by two, often used in calculating returns.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life evenly.

Useful Life

The estimated period a fixed asset is expected to be useful to the purchasing company, affecting its depreciation calculations.

Total Income

The sum of all revenues and gains earned by a company during a specific period, including sales, interest, dividends, and other sources of income.